SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Gold Price Monitor
GDXJ 97.80+0.9%Nov 19 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Rarebird who wrote (34354)5/22/1999 3:32:00 PM
From: ahhaha  Read Replies (3) of 116763
 
It's a fairly good analysis, but the manipulation factor is superfluous. The supply function may be displaced by various unknowable factors. You can't validly assert the degree of such alleged factors. It is difficult enough to know the slope of the supply function or its location, because at any measuring point of the quantity argument you only have a one point value of quantity supplied. You don't have a set of points defining the marginal structure of the function. These methods are a posteriori in macro markets. They're applicable in local markets where most input factors are determined and constrained and so provide stable results. For example, It is common to create meaningful DS functions in single product established markets of consumer durables.

Accordingly exogenous factors destroy the determinacy of these models. I would give the example of the recognition that gold is cheap as a positive feedback that would cause the supply curve to backward bend in instantaneous extrapolation. Of course, the curve merely is translated in reality over time, but the effect is that the previous expected supply at a marginally higher price is lower. These feedback phenomena are precisely what give markets parabolic price translations and the author makes a reasonable case for that to occur.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News